The author presents the view that informal economies arise when governments impose excessive taxes and regulations that they are unable to enforce. The author studies the determinants and effects of the informal sector using an endogenous growth model whose production technology depends...

Saving rates display considerable variation across countries and over time. This paper investigates the factors behind these broad saving disparities using a large cross-country time-series data set constructed for the World Bank Saving project. The paper assesses empirically the policy and...

Corruption robs the public of precious resources, distorts the incentives to engage in productive activities, destroys confidence in public institutions, and spurs political instability. It disproportionately harms the poor and vulnerable. In turn, corruption is the result of perverse...